• Register
Return to: Home > News > Regulation > CC delays remedies implementation due to EU audit reform

CC delays remedies implementation due to EU audit reform

The UK Competition Commission (CC) is to delay the implementation of the remedies for the UK audit market, which include 10 year mandatory retendering, until more is known on the European audit reform expected to be voted on by the EU Parliament in February.

The CC said that the EU reform regulation and directive documents are "likely to be finalized and come into force in the second quarter of 2014" and the watchdog is "keen to follow the principles of better regulation including by ensuring that our orders do not contradict or duplicate EU regulation".

"Therefore, in the light of these developments we have extended our administrative timetable to enable us to consider fully the implications of the EU proposals on our own orders. We anticipate further rounds of consultation on our revised orders in the third quarter of 2014 and a commencement date in quarter four, " the CC said.

In December the European Parliament, EU Council and the European Commission reached an agreement which determines compulsory rotation of public interest entities' (PIEs) auditors after 10 years, after which period it allows the possibility for member states to allow the auditor or audit firm to continue audit of the same PIEs up to the maximum duration of 20 years where a public tendering is conducted.

The agreement also proposes a 70% cap on the fees earned for non-audit services rendered to an audit client, therefore an audit firm would not be able to tender for non-audit services worth more than 70% of the audit fee.

Prior to the EU consensus the CC announced in September that UK audit firms will have to retender their FTSE 350 audits at least every 10 year, however the regulator did not find enough evidence to support mandatory rotation of audit firms.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.